Fuel bill hits $868 million in JetBlue's $257 million Q3 loss

JetBlue Airways shares jumped 11% in after-hours trading on Monday following the release of its third-quarter financial results. The carrier reported a net loss of $257 million for the three months ended Sept. 30, widening the deficit from the $143 million loss recorded in the same period a year ago.

The primary driver of the loss was a surge in fuel expenses. JetBlue’s fuel bill increased by 61% to reach $868 million. Despite this cost pressure, the airline stated that resilient travel demand allowed it to offset a larger portion of the fuel increase than originally projected.

CEO Joanna Geraghty attributed the revenue performance to strong yields. “Resilient demand and strong yields drove revenue well ahead of our initial expectations,” Geraghty said in an earnings release. The average fare rose more than 19% to $245.11 in the third quarter, up from $205.67 in the previous year’s period.

Total revenue for the quarter came in at $2.81 billion, slightly below the $2.82 billion estimate compiled by LSEG. The adjusted loss per share was 60 cents, missing the expected 55-cent loss. JetBlue has not posted an annual profit since 2019, a fact that has drawn scrutiny from investors as the stock hit a new low before Monday’s report.

The airline faces structural challenges alongside cost pressures. A group of senior creditors is reportedly working with restructuring adviser PJT Partners, according to a Friday report by The Wall Street Journal. The company is also navigating recent legal setbacks that blocked its acquisition of Spirit Airlines and a regional partnership with American Airlines.

JetBlue ended the quarter with $2.2 billion in liquidity. Its unencumbered asset base stands at $7 billion, which includes $2.8 billion in aircraft and engines. Total debt reached $8.4 billion as of Sept. 30.

CFO Ursula Hurley stated that the company believes it has sufficient financing options to bridge toward at least $1 in earnings per share and positive free cash flow by 2028. Executives will hold an earnings call on Tuesday at 10 a.m. ET to address analyst questions regarding the company’s long-term health.